Renting guides

7 ways to protect yourself against rip off letting agents

For many of us renting is a fact of life, but with many letting agents only interested in your cash, not putting a roof over your head, there are certain steps you must take to stay safe. We explain.

Use a registered letting agency

You should only ever use letting agencies that are signed up to a main letting agency organisations and The Property Ombudsman.

Do your homework

Search recognised groups, like:

National Landlords Association (NLA)

UK Association of Letting Agents (UK ALA)

Association of Residential Letting Agents (ARLA)

National Approved Letting Scheme (NALS)

Use these to look for letting agents in your area, and cross reference with the search on The Property Ombudsman website.

This way you can be sure that they are adhering to an official code of practice meaning they have been vetted beforehand, and also ensure you have a greater level of protection should something go wrong.

Letting agents that sign up to one of the four associations should:

Put your deposit in a recognised Tenancy Deposit Scheme and adhere to its rules

Have professional indemnity insurance

Provide you with a copy of the Tenancy Agreement to review before you have to sign it

Give you a full inventory of the property

Treat you with respect

Have an in-house complaints system and give you the right to complain to The Property Ombudsman

Furthermore, they should not disclose your personal information without your consent.

Always visit properties before handing over cash

Always view properties with the agent before you sign anything or hand over any cash. This is the only way you can check that the property is actually theirs to let and see what it's like for yourself.

If they ask you to pay a fee before letting you see it, you know something's up.

Beware of holding fees

Letting agencies will often ask you to pay a holding fee to secure a property you like before you have done any paperwork, and sometimes even before you have even visited it.

Did you know?

Agents are not obliged to put these fees in any kind of protection scheme and there is no guarantee you will get your money back whether you end up renting the property or not.

If you are certain it is worth paying out for then:

Get written confirmation of where your money will be kept

Get written confirmation that you will get your money back in full if you or the landlord pull out

Pay on a credit card or debit card

Get a receipt that states the exact amount you have paid

Many agents will keep your holding fee if you decide you no longer want the property. So be careful when paying and try to establish beforehand what will happen if you change your mind (and get it in writing).

Quiz the letting agent

There are many questions you should ask before moving in, but above all ask:

What fees apply upfront and ongoing? Letting agents need to explain their fees and tell you what they are for. If you feel they are unreasonable then negotiate or go elsewhere.

How much notice will you get if your landlord wants you to move out? Find out what is stated in your contract before signing anything.

How much notice must you give if you want to move out and how long is the initial tenancy?

Will the rent be fixed for the duration of the contract? Make sure it is, otherwise your landlord can increase it whenever they feel like it.

What is included in the property? Get a full inventory and check it before you agree to the rental.

How much is the rent? Get it broken down weekly, monthly and yearly so that it is absolutely clear what you are expected to pay.

When will you need to pay rent? Any good landlord should have a set date when they take payment, if it is monthly (or a set day each week if it's weekly).

How can you pay rent? Ask if it's possible to pay by Direct Debit as this will give you some protection. If they insist on cash, make sure you get a detailed and signed receipt each time.

How will your deposit be protected? Ensure that your deposit will be held in a Tenancy Deposit Protection scheme - it has been compulsory for agents and landlords to do this since 2007 so there's no excuse.

Make sure your deposit is protected

Your deposit could be the equivalent of a month or two's rent, so it is crucial that you make sure it is protected - otherwise you may not see it again.

Extra protection

Credit card:

If your deposit is more than £100, paying with a credit card will mean you are protected by Section 75 of the Consumer Credit Act 1974.

Debit card:

Otherwise use a debit card because you may be able to make a chargeback claim if something goes wrong.

Find out which tenancy deposit protection scheme the agency uses. Then, check that they are registered - do not just take their word for it.

There are three organisations currently in operation:

Deposit Protection Service

Tenancy Deposit Scheme

mydeposits

If the letting agent is not willing to tell you where your money is kept, or are not part of a protection scheme, do not give them any of your money.

Even if they are above board make sure you do not pay with cash. It may be the easiest way, but if you do there is no protection on your money.

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